IAASB enhances and modernizes ISA 315 for a more robust risk assessment
Dec 19, 2019
On December 19, 2019, the International Auditing and Assurance Standards Board (IAASB) released International Standard on Auditing (ISA) 315 (Revised 2019), its revised standard for identifying and assessing risks of material misstatement.
ISA 315 (Revised 2019) is an important part of the IAASB’s efforts to improve audit quality globally. In finalizing the changes, the IAASB focused on the understandability, complexity and length of the standard, and made enhancements and clarifications to encourage a more consistent and robust risk assessment, which forms the foundation of the auditor’s efforts to gather sufficient appropriate audit evidence. The revisions also modernize the standard to keep up with the evolving environment in which businesses operate, in particular in relation to technology, as well as a focus on why procedures are required.
ISA 315 (Revised 2019) becomes effective for financial statement audits for periods beginning on or after December 15, 2021.
Review the press release and final pronouncement on the IAASB's website.
